Marginal revenue equals

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue that a firm earns by selling one more unit of a product. Hence, option D, which states that marginal revenue is the change in total revenue from selling one more unit, is the correct answer. Option A is incorrect because it mistakenly equates total revenue with marginal revenue, which is not the case. Option B is incorrect because it incorrectly combines price, quantity, and average revenue in a formula that does not make sense for determining marginal revenue. Option C is also incorrect because it equates total revenue with average revenue, again failing to provide the correct formula for determining marginal revenue.

Marginal Revenue Equals